Monday, April 27, 2015

Microsoft hints at impending write-off of Nokia acquisition that could total billions | Computerworld

A different kind of expectation-setting

"Microsoft currently carries $5.46 billion in "goodwill" from the Nokia acquisition on its books, as well as another $4.51 billion in intangible assets. The Redmond, Wash. company had attributed the Nokia goodwill to "increased synergies that are expected to be achieved from the integration of NDS [Nokia Corp.'s Devices and Services business]."

That value may now be greatly overstated, Microsoft acknowledged.

"The valuation of acquired assets and liabilities, including goodwill, resulting from the acquisition of NDS, is reflective of the enterprise value based on the long-term financial forecast for the Phone Hardware business," the firm said in last Thursday's 10-Q. "In this highly competitive and volatile market, it is possible that we may not realize our forecast.""